Abstract

<p align="justify">Poverty is a serious issue that must be addressed immediately by countries in the world, including Indonesia. The Indonesian government has implemented a variety of poverty reduction projects, such as providing education and health insurance. The rising poverty rate is due to the poor quality of education and health care. On Sumatra, there are 5,83 million poor people or 22,06 percent of the total number of poor people in Indonesia. This statistic appears to be quite large, and the government should be concerned about it. Factors causing poverty such as education and health are latent variables that cannot be measured directly. The suitable statistical method used is Structural Equation Model (SEM). In SEM analysis, there are three types of model fit tests: measurement model fit with Confirmatory Factor Analysis (CFA), overall model fit, and structural model fit. The results indicated that the model was fit or suitable for the model's tests. From the SEM model that was formed, it was found that health had a negative and significant effect on poverty and education did not have a significant effect on poverty and 77 percent of the variation in poverty could be explained by the SEM model that was formed.</p><p><strong>Keywords</strong><strong>: </strong>poverty; education; health; SEM; CFA</p>

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